Livelihoods
In rural Maharashtra, landless laborers, tenant farmers, and oral lessees have historically been excluded from formal banking systems due to a lack of land titles and collateral. MITRA Foundation recognized the Joint Liability Group (JLG) model as an effective mechanism to bridge this gap.
Without access to institutional credit, vulnerable farming communities were forced to rely on informal moneylenders who charged exorbitant interest rates, trapping them in endless cycles of debt and poverty.
Landless laborers, tenant farmers, rural women, and marginalized agrarian communities.
Intervention: Formation of Joint Liability Groups (JLGs) and facilitating their direct linkage with formal financial institutions.
Approach: A highly localized, participatory approach involving community mobilization, financial literacy camps, and rigorous capacity building prior to bank linkages.
Outputs: Successfully promoted and credit-linked over 465 JLGs to date across multiple blocks.
Outcomes: Reduction in dependency on local moneylenders and successful infusion of working capital into rural micro-enterprises.
Transforming the rural credit landscape by circulating Rs. 13.29 Crore in livelihood finance, directly elevating the socio-economic status of over 2,300 families.
"With the financial support from our JLG loan through Vidharbha Konkan Gramin Bank, I started a bangle store business. It has given my family a steady daily income and restored my dignity." — Mrs. Renuka Kuppagiri, JLG Member
Learnings: Peer pressure acts as a highly effective substitute for collateral, leading to exceptionally high repayment rates.
Sustainability: As groups successfully repay their first loan cycle, they become eligible for larger limits, creating an independent, self-sustaining relationship with banks.
